I turned 62 on June 29, 2016. I have prepared my on-line request for SS and SSDI. I was injured in an auto accident in 2012. I was terminated from my job June 30, 2015. Due to my disability I have not been able to work full-time. I am ready to file for early retirement at a rate of $1,673/month and if I receive the disability I will receive $2,231/month. Using my calculations just for the early retirement vs waiting to age 66 or 70 based todays monthly benefits without any cost of live and multiplied by a 4% investment rate the following results were found: Based on life expectancy of age 90:

Age 62 accumulation $1,001,000 age 66 $1,040,000 age 70 $1,041,000

I feel that it makes sense to file today for early retirement and for SSDI at the same time. Do you agree?

Thank you, Tim

Hi Tim,

You should not be making ANY calculations based on life expectancy. You are not going to die on time, i.e., at your life expectancy. To figure out the value of your benefits under any collection strategy, given lifespan uncertainly, you need to form the discounted present value of what you'll received in all future years right up to your maximum age of life. That's why our software asks our users about their maximum, not their expected age of life

Do not file for your retirement benefit and your disability benefit. File just for your disability benefit. The amount you’ll get if you’re approved will be the same as your full retirement benefit. If you file for both retirement benefit and disability benefits at 62, you'll get your reduced retirement benefit at least initially, and the reduction will become permanent if your disability claim isn’t approved. This would result in your being stuck with a roughly 25% lower monthly benefit for the rest of your life.

If you file for both benefits and your disability claim is approved, you’ll end up getting your full retirement age benefit unless the disability entitlement date ends up being later than when you started drawing your retirement benefits. In that case, you’ll still be stuck with a permanent reduction for any months that you received reduced retirement benefits prior to your date of disability entitlement.

best, Larry